Boston Condos for Sale and Rent
Its happening: Boston Buyers Condo Market is Arriving
There’s no denying the Boston condo for sale market has delivered a fair share of challenges to homebuyers over the past two years. Two of the biggest hurdles homebuyers faced during the pandemic were the limited number of Boston condos for sale and the intensity and frequency of bidding wars. But those two things have reached a turning point.
As you may have already heard, the Back Bay and Beacon Hill condos for sale have increased this year, and even more so this spring. As Danielle Hale, Chief Economist for realtor.com, explains:
“New listings–a measure of sellers putting homes up for sale–were up 6% above one year ago. Home sellers in many markets across the country continue to benefit from rising home prices and fast-selling homes. That’s prompted a growing number of homeowners to sell homes this year compared to last, giving home shoppers much-needed options.”
This is encouraging news, as more Boston condos for sale coming onto the market gives you a greater chance of finding one that checks all your boxes.
Buyer Competition Helps Boston Condo Inventory Grow Even More
Mark Fleming, Chief Economist at First American, says inventory growth is happening not just because there’s an increase in the number of listings coming onto the market, but also because buyer demand has moderated some in light of higher mortgage rates and other economic factors:
“There has been a pickup in the inventory that we’ve seen recently, but it’s not from a big increase in new listings . . . but rather a slowdown in the pace of sales. And remember that months’ supply measures the inventory of sales relative to the pace of sales. Same inventory, fewer sales, means more months’ supply.”
Basically, the market is shifting away from the frenzy of buyer competition seen during the pandemic, and that’s helping available inventory grow. In their latest forecast, realtor.com also mentions the moderation of demand as a key factor and projects the inventory growth should continue:
“As rising inflation and mortgage rates bring U.S. housing demand back from the 2021 frenzy, . . . inventory will grow double-digits over 2021 and offer buyers a better-than-expected chance to find a home.”
How This Impacts You as a Boston Condo for Sale Buyer
The combination of more Boston condos for sale coming onto the market and a slower pace of home sales means you’ll have more options to choose from as you search for your next Boston condo. That’s great news if you’ve been searching for a while with little to no luck. Just remember, there isn’t a sudden surplus of inventory, just more homes to choose from than even a few months ago. So, you’ll still want to be decisive and move fast when you find the right home for you.
And when you do, you may be faced with less competition from other buyers too. If you’ve been waiting to jump into the market because the intensity of the bidding wars was intimidating or if you’ve been outbid on several homes, this moderation could help make the home buying process a bit smoother. It’s not that it’ll be easy or that bidding wars are a thing of the past – that’s not the case. But it won’t feel nearly as impossible.
Boston Condos for Sale and the Bottom Line
As the housing market begins its shift back toward pre-pandemic levels, you could have a unique opportunity in front of you. With moderate levels of buyer competition and more homes actively for sale, your home search may have gotten a bit less challenging. Let’s connect to begin the process today.
Ford Realty – Boston Real Estate Google Reviews 2019, 2020, 2021 and 2022
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June marks a turning point in the housing frenzy, homebuyers starting to regain control
Boston condo for sale buyers is finally starting to regain some control.
May was a turning point in the pandemic housing frenzy, according to a new Redfin report, which saw home inventory climb to a new high and more sellers dropping their prices.
Boston condo market slowdown
But that all comes at a great cost as record-high prices, along with the 5% mortgage rates continues to keep many buyers out of the market. Last month a record 57% of homes sold above list price, up from 51% a year earlier.
Redfin’s economics research lead Chen Zhao said the sudden surge in mortgage rates led to May’s sudden and significant housing market cooldown.
“However, mortgage rates are now stabilizing and homes remain in short supply, so while we do expect home-price growth rates to decline, we don’t expect prices to fall much at the national level,” Zhao said. “For homebuyers trying to determine the best timing this year, the main benefit of waiting is that there may be less competition as supply starts to build up.”
Google Search for “homes for sale” down 10%
Redfin found fewer Google searches for “homes for sale” during the week ended May 21, down 10% from a year earlier. Its Homebuyer Demand Index, which measures requests for tours and other services, fell 9% year over year during the week ended May 29, the seventh consecutive decline in the index.
Home mortgage applications fell 14%
Additionally, mortgage applications fell 14% from last year as the 30-year mortgage fell slightly to 5.09% for the week ended June 2. With that, the monthly mortgage payment on a median asking price home fell slightly to $2,391 up 40% from $1,710 a year earlier, when mortgage rates were 2.99%.
Active listings fell 10% year over year
In the four weeks ended May 29, active listings fell 10% year over year (the smallest decline since April 2020). The median asking price rose 17% from 2021 to $412,450. Meanwhile, the median sale price increased 16% year over year to a record $400,999.
44% homes went under contract in first two weeks
Fifty-four percent of homes went under contract with an accepted offer within the first two weeks of being listed, up from 53% last year. Thirty-nine percent of homes went under contract with an accepted offer within one week, remaining flat from last year.
Homes on the market fell to a record-low 14 days
Homes on the market fell to a record-low 15 days, a drop from 19 days in 2021. And they continue to sell well above the asking price. A record 57% of homes sold above list price last month, up from 51% a year earlier.
Updated: Boston Real Estate Blog 2022
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